Hanwha Life Insurance Co. agreed to acquire a 75% stake in New York-based securities firm Velocity Clearing LLC, marking the first US brokerage purchase by a South Korean insurer.
The deal gives the Seoul-based company direct access to sell financial products in the US market. Velocity Clearing, founded in 2003, provides clearing, settlement, and prime brokerage services to institutional investors.
CEO Yeo Seung-joo sees the acquisition as key to boosting the insurer’s global capabilities and long-term growth. The transaction requires regulatory approvals in both countries.
The purchase reflects Hanwha Life’s push to counter challenges in South Korea’s life insurance sector, which faces headwinds from low birth rates and an aging population. Earlier this year, the company invested in Indonesia’s Nobu Bank, becoming the first Korean insurer to enter overseas banking.
Hanwha Life’s Vietnam subsidiary recently became its first overseas unit to pay dividends after recording profits through 2023. The company plans to leverage Velocity’s infrastructure to offer institutional-grade investment products to retail customers.
The transaction value wasn’t disclosed.
